PowerTex India (COMPREHENSIVE SCHEME FOR POWERLOOM SECTOR DEVELOPMENT)

OFFICE OF THE TEXTILE COMMISSIONER MINISTRY OF TEXTILES, GOVERNMENT OF INDIA

1st April, 2017

• A Comprehensive Scheme for Powerloom Sector Development is launched as

PowerTex India and the same comes into effect on 1st April, 2017 and would be for

duration up to 31st March, 2020, with the following components.

1. ATUFS

2. In situ Upgradation of Plain Powerlooms

3. Group Workshed Scheme

4. Yarn Bank scheme

5. Common Facility Centre (CFC) scheme

6. Pradhan Mantri Credit Scheme for Powerloom Weavers

7. Solar Energy Scheme for Powerlooms

8. Facilitation, IT, Awareness, Market Defvelopment and Publicity for Powerloom

Service Centres (PSCs).

9. Tex Venture Fund

10. Group Insurance Scheme (GIS)

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PowerTex India (COMPREHENSIVE SCHEME FOR POWERLOOM SECTOR DEVELOPMENT)

Technology Upgradation Fund Scheme (TUFS)

• To catalyse investments for technology upgradation on

benchmarked machinery in all the sub-sectors of textiles including

jute industry

• Till RRTUFS, Scheme was lending agency driven

• MoT/TxC released subsidy after due diligence and verification by

the bank

• ATUFS: Due diligence and verification of assets by TxC.

Benefits Under ATUFS

Sl.

No. Segment

Rate of Capital

Investment

Subsidy (CIS)

CIS per

individual

entity

1. Garmenting, Technical Textiles

15% on eligible

Machines

Rs. 30

Crore*

2. Weaving for brand new Shuttle-less

Looms (including weaving preparatory

and knitting), Processing, Jute, Silk

and Handloom.

10% on eligible

Machines

Rs. 20

Crore*

3(a) Composite unit /Multiple Segments - If

the eligible capital investment in

respect of Garmenting and Technical

Textiles category is more than 50% of

the eligible project cost.

15% on eligible

Machines

Rs. 30

Crore*

3(b) Composite unit/ Multiple Segments -

If the eligible capital investment in

respect of Garmenting and Technical

Textiles category is less than 50% of

the eligible project cost.

10% on eligible

Machines

Rs. 20

Crore*

* If applicant availed subsidy under RRTUFS, will be eligible for only the balance amount within the

overall ceiling fixed for an individual entity.

ATUF Scheme is Direct Benefit Transfer (DBT) compliant.

In-situ Upgradation of Plain Powerloom

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• GOI Subsidy has been enhanced for upgradation of plain

powerlooms into semi automatic looms and shuttleless Rapier looms

by way of installation of specified kits.

• Powerloom units having upto 8 looms are eligible.

• Amount of GOI subsidy to be provided is as under:

Type of Technology GOI Subsidy per loom (in Rs.)

General (50%) SC (75%) ST (90%)

Plain loom to semiautomatic

shuttle loom

20,000 30,000 36,000

Semi automatic shuttle loom to

shuttleless Rapier loom

25,000 37,500 45,000

Plain loom to shuttleless Rapier

loom

45,000 67,500 81,000

• Objective

• To facilitate the establishment of Worksheds for shuttleless looms

in an existing or new cluster, which will provide required scale of

economy for business operations.

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Group Workshed Scheme (GWS)

• To organise powerloom units in a cluster and to provide improved working condition in terms of

more space, work environment, improve the work efficiency to enhance their competitiveness in

the global market.

• Eligible Beneficiaries

• State Govt. (or) its agency

• A registered Cooperative Society

• A Company set-up under Companies Act, 1956 as amended (or) a firm set-up under the

Limited Liability Partnership Act, 2008 as amended, by a group of powerloom

owners (minimum of Four beneficiaries)

• The local powerloom association.

• At least 24 nos. of shuttleless looms of width upto 230 cms (or) 16 nos. of shuttleless

looms of wider width i.e. 230 cms and above must be installed.

• Additional subsidy for construction of Dormitory for accommodation of minimum 1.25 persons per

powerloom will be provided @ 125 Sq.ft per person.

• 2352 shuttleless looms targeted for installation for next three years (01.04.2017 to 31.03.2020).

• Rs.72 cr has been earmarked for the component of GWS for next three years (01.04.2017 to

31.03.2020).

• Objective

• To provide interest free corpus fund to Special Purpose

Vehicle (SPV) / Consortium to enable them to purchase

yarn at wholesale rate and give the yarn at reasonable price

to the small weavers.

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Yarn Bank Scheme

• Minimum 11 members required to form SPV

• SPV must be a

• Registered Cooperative Society

• Trust

• Company set-up under Companies Act, 1956 as amended

• Firm set-up under the Limited Liability Partnership Act, 2008 as amended

• Max. GOI interest free corpus fund Rs.2 cr.

• SPV has to provide Bank Guarantee equal to an amount of 25% of Govt. of India share.

• 12 projects targeted to set-up yarn bank for next three years (01.04.2017 to 31.03.2020).

• Rs.24 cr has been earmarked for the component of Yarn Bank for next three years

(01.04.2017 to 31.03.2020).

• Objective

• To provide financial assistance for setting-up of common

facility centres design centre / studio, testing facilities,

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Common Facility Centre (CFC) Scheme

• Minimum 11 members required to form SPV

• SPV must be a

• Registered Cooperative Society

• Trust

• State Govt./State Govt. agencies

• Company set-up under Companies Act, 1956 as amended

• Firm set-up under the Limited Liability Partnership Act, 2008 as amended

• Max. GOI subsidy Rs.2 cr.

• More than one CFC project can be established in a cluster.

• 12 projects targeted to set-up CFC for next three years (01.04.2017 to 31.03.2020).

• Rs.24 cr has been earmarked for the component of CFC for next three years (01.04.2017

to 31.03.2020).

training centre, information cum trade centre and common raw material / yarn / sales

depot, water treatment plant for industrial use, dormitory, workers’ residential

space, common pre-weaving facilities viz. Yarn dyeing, Warping & Sizing, Twisting

etc., and post weaving facilities viz. Processing, etc.,

• Objective

• To provide financial assistance viz. Margin Money Subsidy and interest

reimbursement as against the credit facility (term loan) availed under Pradhan

Mantri Mudra Yojana (PMMY) to the decentralized powerloom units / weavers.

• Margin Money Subsidy as against the credit facility (term loan) availed under Stand-

up India scheme by the SC, ST & Women Entrepreneur of the decentralized

powerloom units / weavers to meet their credit requirements such as for investment

needs (Term Loan) and for working capital etc.

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Pradhan Mantri Credit Scheme for

Powerloom Weavers

• Under PMMY

• Eligible Powerloom units: Existing individual powerloom units (or) New individual

/ group enterprises involved in weaving activity.

• Financial Assistance: Margin money @20% of project cost with a ceiling of Rs.1

lakh along with Interest Subvention @ 6% per year both for working capital and

term loan will be provided upto 5 years

• 450 units targeted for next three years (01.04.2017 to 31.03.2020)

• Rs.10 cr has been earmarked for the said component for next three years (01.04.2017

to 31.03.2020). Contd..

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Pradhan Mantri Credit Scheme for

Powerloom Weavers

• Under Stand-up India

• Eligible Powerloom units: (i) Only new powerloom units established by a person who

belongs to a Scheduled Caste (SC) or Scheduled Tribe (ST) or is a woman entrepreneur

(ii) In case of non-individual units at least 51 % of the share holding and controlling

stake should be held by either an SC (or) ST (or) women entrepreneur.

• Financial Assistance: 25% Margin Money on the project cost, the borrower is required

to bring in 10% of the Project Cost as his/her own contribution.

• 200 units targeted for next three years (01.04.2017 to 31.03.2020)

• Rs.10 cr has been earmarked for the said component for next three years (01.04.2017 to

31.03.2020).

• Objective

• To provide financial assistance/capital subsidy for installation of

Solar Photo Voltaic Plant (Solar Plant) by small powerloom units to alleviate the problem of

power cut / shortage.

• Powerloom units having upto 8 looms are eligible.

• On Grid Solar Power Plant (without Battery back up) and Off Grid Solar Power Plant (with

Battery back-up).

• Financial Assistance:

• 480 powerloom units targeted to install solar plant for next three years (01.04.2017 to

31.03.2020).

• Rs.19.848 cr has been earmarked for the component of CFC for next three years (01.04.2017 to

31.03.2020). 11

Solar Energy Scheme for Powerlooms

No. of Looms

(Solar capacity)

General (50%) SC (75%) ST (90%)

i) On Grid Solar Power Plant

4 Looms (4 KW) Rs1,40,000 Rs.2,10,000 Rs.2,52,000

6 Looms (6 KW) Rs.2,10,000 Rs.3,15,000 Rs.3,78,000

8 Looms (8 KW) Rs.2,80,000 Rs4,20,000 Rs.5,04,000

i) Off Grid Solar Power Plant

4 Looms (4 KW) Rs1,80,000 Rs2,70,000 Rs.3,24,000

6 Looms (6 KW) Rs.2,70,000 Rs.4,05,500 Rs.4,86,000

8 Looms (8 KW) Rs3,60,000 Rs.5,40,000 Rs6,48,000

• Objective

• To give wide publicity, including event based publicity etc.

through electronic, print, film media, multimedia, to the Powerloom schemes, programmes being run

by the Office of Textile Commissioner, Mumbai (O/o the TxC).

• To create an enabling environment for publicity.

• To disseminate information about the modalities and benefits of schemes, programmes being run by

O/o the TxC, Mumbai.

• To promote awareness and to trigger the developmental mode of decentralised powerloom sector.

• To encourage volunteer action for ensuring effective implementation of schemes, programmes being

run by the O/o the TxC, Mumbai.

• To extend financial support for National & International events organized by O/o the TxC, Mumbai

• GOI Financial Assistance of Rs.10.50 cr has been earmarked for next three years (01.04.2017 to

31.03.2020) to develop/ organise the followings

• Facilitation Services: Helpline, Registration Facility for Powerloom weavers and units with the PSCs,

SMS alerts, Bank Assistance, Entrepreneur Cell, Design and Technical Advancement.

• IT- Development of online-portal / mobile application in respect of schemes implemented by

GOI.

• Awareness and Market Development Programmes: Seminars/Workshops, Buyers Seller Meets,

International events like Reverse Buyers Seller Meets, E-platform of marketing of Powerloom

products, Exposure Visit of Weavers and Conducting studies, surveys and evaluation programmes/

Schemes on the special needs.

• Publicity in Electronic and Print Media.

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Facilitation, IT, Awareness, Market Defvelopment and

Publicity for Powerloom Service Centres (PSCs)

• SIDBI Venture Capital Fund Ltd (SVCL) invests on behalf of MOT in form of equity in

MSMEs to kick start an enterprise/ expansion.

• Investments will typically be in innovative private powerloom MSME companies.

• Max. 50% of the project cost with a ceiling of Rs.3.00 cr is invested by SVCL.

• Rs.13.00 cr has been earmarked for the component of Tex-Venture Capital Fund for

next three years (01.04.2017 to 31.03.2020).

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Tex-Venture Capital Fund

• Benefits:

• Natural death :Rs.2,00,000

• Accidental Death :Rs.4,00,000

• Permanent Disability :Rs.2,00,000

• Partial Disability :Rs.1,00,000

Group Insurance Scheme (GIS)

• Provides insurance cover to the powerloom workers aged between

18 to 59.

Premium Detail

Contribution Age 18-50 Age 50-59

Beneficiary Rs 80 Rs 80

LIC Rs 100 Rs 100

Ministry of Textiles

Rs 582 Rs 150

• INTEGRATED SKILL DEVELOPMENT SCHEME (ISDS)

• SCHEME FOR INTEGRATED TEXTILE PARKS (SITP)

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Schemes other than Power Tex

Contact for further information

Headquarter, Mumbai

• Office Of The Textile Commissioner, Govt. of India, Ministry of Textiles 48, Vithaldas Thackersey Marg, Nishtha Bhavan, Mumbai - 400020 Tel : 022 - 22001050 | Fax : 022 - 22004693 Website:- www.txcindia.gov.in

Regional Office, Indore

• The Officer-in-Charge, Regional Office of the Textile Commissioner, Corporate Block, Readymade Garment Complex, Pardeshipura, Indore - 452011 Phone: 0731-2572261, 2572262 E-mail: rotcind@gmail.com, rotcind@mp.gov.in

Thank You